Guidehouse Digital LLC awarded $5.8M for Computer Systems Design Services by HHS NIH, with a base year starting April 2025

Contract Overview

Contract Amount: $5,804,972 ($5.8M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-04-01

End Date: 2027-03-31

Contract Duration: 729 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: 25-001961 - BASE YEAR WITH OPTIONS - LABOR T&M - POP: 4/1/2025 - 3/31/2026. PRE QUOTE #C-119944-SB. USE THE FOLLOWING CANS. 8326638: $528,787.81 - 8330949: $2,115,151.23 - 8050293: $200,000.00 SEND PO TO: CBASSFORD@GUIDEHOUSE.COM

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.8 million to GUIDEHOUSE DIGITAL LLC for work described as: 25-001961 - BASE YEAR WITH OPTIONS - LABOR T&M - POP: 4/1/2025 - 3/31/2026. PRE QUOTE #C-119944-SB. USE THE FOLLOWING CANS. 8326638: $528,787.81 - 8330949: $2,115,151.23 - 8050293: $200,000.00 SEND PO TO: CBASSFORD@GUIDEHOUSE.COM Key points: 1. The contract's total value of $5.8 million over its potential duration suggests a significant investment in IT services. 2. Full and open competition was utilized, indicating a broad market search and potential for competitive pricing. 3. The contract type is Time and Materials, which can pose cost control risks if not closely monitored. 4. The National Institutes of Health (NIH) is the specific agency within HHS, suggesting a focus on health research IT needs. 5. The contract duration of 729 days (including options) allows for sustained support but requires ongoing performance evaluation. 6. The use of a Delivery Order under a larger contract vehicle implies a streamlined procurement process for specific needs.

Value Assessment

Rating: fair

The total award amount of $5.8 million for computer systems design services over approximately two years requires careful benchmarking against similar contracts. Without specific details on the labor categories, hours, and rates, a precise value-for-money assessment is challenging. However, the Time and Materials (T&M) contract type introduces inherent risk for cost overruns if not managed diligently. The contract is a delivery order, suggesting it's part of a larger, potentially pre-competed, indefinite-delivery indefinite-quantity (IDIQ) contract, which could offer some level of pre-negotiated rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, encouraging multiple bidders to vie for the contract. The number of bidders is not specified, but the full and open nature suggests a robust selection process aimed at achieving the best value for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and increases the likelihood of selecting a contractor offering the best combination of price and technical merit.

Public Impact

The primary beneficiaries are likely researchers and administrative staff within the National Institutes of Health (NIH) who rely on robust IT systems. Services delivered include computer systems design, crucial for supporting the complex data management and research infrastructure of NIH. The geographic impact is centered around NIH facilities, primarily in the Washington D.C. metropolitan area, though remote support is possible. Workforce implications may include the need for specialized IT professionals to support NIH's mission, potentially creating opportunities for skilled labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not strictly managed and monitored for efficiency.
Lack of specific performance metrics or Service Level Agreements (SLAs) in the provided data makes it difficult to assess performance outcomes.
The contract is a delivery order, which might indicate a need for further scrutiny of the underlying IDIQ contract for potential scope creep or pricing issues.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
The contractor, Guidehouse Digital LLC, is a known entity in the government contracting space, implying some level of established capability.
The contract supports the National Institutes of Health, a critical mission agency, indicating alignment with important government objectives.

Sector Analysis

The computer systems design services sector is a vital component of the broader IT industry, supporting government agencies in managing complex data, research, and operational systems. The market is characterized by a mix of large system integrators and specialized service providers. Spending in this area often fluctuates with agency modernization efforts and research funding. Comparable spending benchmarks would typically involve analyzing IT service contracts awarded by agencies like HHS, NIH, or other research-focused federal bodies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Guidehouse Digital LLC, may engage small businesses as subcontractors, which would depend on their internal subcontracting plans and the specific requirements of the delivery order.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the program office at the National Institutes of Health (NIH). As a Time and Materials contract, rigorous monitoring of labor hours, rates, and task completion is essential. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction isn't detailed here, the HHS OIG would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

HHS IT Modernization
NIH Research IT Support
Federal Civilian IT Services
Computer Systems Design Contracts
Time and Materials IT Contracts

Risk Flags

Cost Overrun Risk (T&M Contract)
Performance Monitoring Challenges (T&M)
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.8 million to GUIDEHOUSE DIGITAL LLC. 25-001961 - BASE YEAR WITH OPTIONS - LABOR T&M - POP: 4/1/2025 - 3/31/2026. PRE QUOTE #C-119944-SB. USE THE FOLLOWING CANS. 8326638: $528,787.81 - 8330949: $2,115,151.23 - 8050293: $200,000.00 SEND PO TO: CBASSFORD@GUIDEHOUSE.COM

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE DIGITAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $5.8 million.

What is the period of performance?

Start: 2025-04-01. End: 2027-03-31.

What is the specific nature of the computer systems design services required by NIH under this contract?

The provided data specifies the contract is for 'Computer Systems Design Services' (NAICS code 541512) awarded to Guidehouse Digital LLC by the National Institutes of Health (NIH). While the exact nature of the services isn't detailed, this category typically encompasses a wide range of activities including designing, developing, and implementing IT systems. This could involve software development, network architecture, database design, system integration, IT consulting, and technical support for research computing environments, data analysis platforms, or administrative systems crucial for NIH's mission. The Time and Materials (T&M) contract type suggests that the scope may be flexible or evolve, requiring ongoing definition of tasks and associated labor efforts.

How does the $5.8 million total award value compare to similar IT service contracts at NIH or HHS?

Benchmarking the $5.8 million award requires comparing it against similar Computer Systems Design Services contracts (NAICS 541512) awarded by the National Institutes of Health (NIH) or the broader Department of Health and Human Services (HHS). Without access to a detailed contract database with specific service descriptions, labor categories, and duration, a precise comparison is difficult. However, $5.8 million over a potential period of roughly two years (April 2025 - March 2027) represents a substantial, but not extraordinary, investment for a federal agency like NIH, which manages extensive research and health IT infrastructure. Larger, multi-year IT modernization projects or enterprise-wide system implementations could easily exceed this amount, while smaller, task-specific support contracts might be significantly less.

What are the primary risks associated with the Time and Materials (T&M) contract type for this engagement?

The primary risk with a Time and Materials (T&M) contract, such as this one for computer systems design services, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts obligate the government to pay for the actual labor hours and materials used. If the contractor's efficiency is low, if the scope of work expands without adequate controls, or if labor rates are high, the total cost can exceed initial estimates or budgets. Effective oversight, including detailed tracking of hours, verification of work performed, and strict adherence to ceilings, is crucial to mitigate these risks and ensure value for the taxpayer. The government must actively manage the contractor's performance and resource utilization.

What does 'full and open competition' imply for the value and quality of services received by NIH?

Awarding the contract under 'full and open competition' implies that the NIH sought proposals from all responsible sources, maximizing the pool of potential offerors. This competitive environment is designed to drive down prices as contractors vie for the award, potentially leading to better value for the government. It also increases the likelihood that the NIH will receive technically superior solutions, as multiple approaches and innovations can be presented. The process generally ensures that the chosen contractor offers the best combination of technical merit and cost-effectiveness, benefiting NIH's mission and taxpayer dollars by fostering a market-driven selection.

What is Guidehouse Digital LLC's track record with federal IT service contracts, particularly with HHS or NIH?

Guidehouse Digital LLC is a recognized government contractor with a history of providing various services, including IT and digital transformation solutions, to federal agencies. While the specific details of their past performance on contracts identical to this one (Computer Systems Design Services, T&M, NIH) are not provided in the data, their presence in the federal market suggests experience. A deeper analysis would involve reviewing their contract history, past performance evaluations (if publicly available), and any reported issues or successes on similar engagements with HHS, NIH, or other agencies to fully assess their capabilities and reliability for this specific requirement.

Are there any specific performance metrics or Service Level Agreements (SLAs) associated with this contract?

The provided data summary does not include specific performance metrics or Service Level Agreements (SLAs) for this contract. For a Time and Materials (T&M) contract, performance is often managed through the definition and completion of specific tasks or CLINs (Contract Line Item Numbers) rather than strict SLAs tied to uptime or response times, although these can be incorporated. Effective oversight would involve the NIH program office closely monitoring the contractor's progress against defined work requirements, ensuring timely delivery of services, and verifying the quality of the systems designed and implemented. The absence of explicit SLAs in the summary necessitates a review of the full contract document for detailed performance expectations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: C-119383-SB

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1676 INTERNATIONAL DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,838,739

Exercised Options: $5,804,972

Current Obligation: $5,804,972

Actual Outlays: $1,201,606

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201300006W

IDV Type: GWAC

Timeline